A tabular presentation that shows the outcome for each decision alternative under the various states of nature is called:
A)a payback period matrix.
B)a decision matrix.
C)a decision tree.
D)a payoff table.

Question

Quizplus · Accepted Answer

A payoff table presents the outcome for each decision alternative under different possible states of nature, allowing decision makers to compare the potential outcomes and choose the best course of action. A payback period matrix is used to analyze investments and does not apply to decision alternatives. A decision matrix is a tool used to evaluate and prioritize different options based on criteria, but it does not consider states of nature. A decision tree is a visual representation of decision-making under uncertain conditions, but it is not a table that shows outcomes for each alternative. Therefore, the best choice is D - a payoff table is the most appropriate tool for analyzing decision alternatives under various states of nature.

A Tabular Presentation That Shows the Outcome for Each Decision